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Pacific Sunwear of California Inc. Message Board

  • longtimefollower longtimefollower Nov 20, 2011 1:51 AM Flag

    Buyout or bankruptcy.

    Pick your poison, management.

    Any buyout will need to be LOWBALL. But that's better than a wipeout.

    This thing is spinning the drain. Losses are so horrendous, that balance sheet will be in tatters, in almost no time.

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    • Well we will see shortly Mr LTF.

    • trader1up@rocketmail.com trader1up Dec 7, 2011 3:59 PM Flag

      ignore for you...

    • I don't think the Greeks knew what they were doing, for one minute, when they bought this POS.

      Tremendous egg on their faces. They just kept blindly buying and buying, even though the fundamentals were clearly continuing to collapse. Now, they are NOT buying at $1.25. I agree with you? Where's the infusion from these guys, if they like the brand so much?

      Why aren't they looking to put a bunch of money into it, and put in their own management.

      These guys committed hiri kiri in sinking so much money into this thing. Imho.

    • You're deluded. They're hurting. They're suffering. They're imperiled. The turnaround is NOT happening quick enough.

      Bankruptcy by no later than a year from now in January 2013. Unless they get an infusion...or manage to sell the company.

    • If you look at the quarterlys over the past three reporting periods it looks like it's coming around. Also the chart is primed for a jump. I think this thing is going to come out better than most people think. Shutting stores is a positive if they are in the red.

      Q4 -33
      Q1 -30
      Q2 -18

      And black Friday was strong to start Q4

    • I dont have a position here but are you sure they cant hang in there for the next 9-10 months ?

      If the economy improves and/or they can get some financing, this thing might have 2-5 bagger potential.

      Isnt that potential better than a $1.10 takeunder ?

      Also remember that the board & management dont own squat. So they might even prefer a bankruptcy, gets them a few more years on the payroll regardless of performance.

      So really, a merger doesnt help them as much as the other 2 options. I presume their employment contracts would guarantee their golden parachutes regardless.

      Im considering following Becker Drapkin into HOTT if it pulls back by year end.

      • 1 Reply to smaycs4
      • I think the business model is dead. If I were a shareholder, I'd rather have the bird in the hand. Hand the company over to private equity. I'm sure someone out there would like to try their hand at turning around this storied brand (seemingly the first one, perhaps, to ever enter this sector?)

        But sure, yeah, they could make it to next Xmas, perhaps. Balance sheet isn't horrible yet. It's just going down fast, with no turnaround in sight.

 
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